The US Senate has passed a bill that could impose tariffs of up to 100% on countries importing Russian oil and gas, explicitly targeting India among others. The legislation, named the "Lindsey Graham Sanctioning Russia and Iran Act of 2026," passed by a vote of 86-11, grants the US President authority to enact these tariffs on goods from the top five importers of Russian energy. Currently, these nations are China, India, Azerbaijan, Hungary, and Slovakia.
"Hostile Act" Against India
Harsh Gupta Madhusudan, a prominent fund manager and India equity strategist, sharply criticized the bill, labeling it an "anti-India bill" and a "hostile action against India." Madhusudan questioned why other European nations and even the United States itself, which continue to import Russian energy, were not similarly targeted by the proposed sanctions.
Questioning India-US Relations
Madhusudan dismissed any notion of a "special India-US relationship or friendship," asserting that the legislation reflects the current reality of bilateral ties. He suggested that certain segments of India's elite need a "reality check" regarding the nature of this relationship. Furthermore, he highlighted India's significant economic leverage over Washington, particularly the substantial access granted to US Big Tech companies within the Indian market, questioning whether India would choose to exercise this influence.
Economic Consequences and Congressional Authority
The fund manager also warned of wider economic consequences if India were to reduce its Russian energy imports. He suggested such a move could either drive global oil prices higher or lead to increased Russian oil imports by China, given the fungible nature of oil. Madhusudan reiterated that, regardless of the outcome, the bill constitutes a hostile act. He stressed that the requirement for congressional approval means there would be no relief available from the US Supreme Court.
Legislative Intent
"This bill forces those primary countries keeping Russia's economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy."
Senator Darline Graham, who championed the bill, emphasized its aim to compel countries supporting Russia's economy to choose between trade with the US or continued cheap Russian energy. The bipartisan legislation also seeks to extend the Iran Sanctions Act of 1996 until 2031 and impose sanctions on Russian leaders, oligarchs, and financial institutions.